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T the right answer is in red. if you could just show the steps to how it was found! 6.4 You are considering purchasing one

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the right answer is in red. if you could just show the steps to how it was found!

6.4 You are considering purchasing one of two machines. The first machine would cost $10,000 and have a salvage value after five years of $3,000. The second machine would cost $12,000 and also be in service for years. The annual costs and performances of the two machine are sufficiently identical that you only want to consider initial costs and salvage values. What salvage value is needed for the second machine (after 5 years) to warrant its purchase, assuming that you want the extra $2,000 of cost to return an incremental salvage value of at least 15%? Answer: Salvage value > $7,023 6-6. A $300,000 machine is estimated to have a salvage value of $40,000 after 8 years of service. Show the depreciation (and book value) schedule in table form over the 8-year life using the combination of SL and DDB. Answer: t 0 1 2 Dt Bt 300,000 75,000 225,000 56,250 168,750 42,188 126,563 31,641 949,22 23,730 71,191 3 4 5 4 6 7 17,798 13,348 45 53,394 40,045 40,000 8

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